The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/lump-sum-vs-pension-annuity-29185257.aspx

Subject:  Lump Sum vs Pension Annuity Date:  3/21/2011  11:42 AM
Author:  RoadScholar5 Number:  68665 of 75797

I did 20 years of hard time with my previous employer.

They froze the pension plan in 2006, nevertheless, I am still eligible for a pension based on all my service up to that point.

I am eligible to begin receiving a reduced monthly amount at age 55, or wait and receive the full monthly benefit at age 65.

Additionally, there is an option to receive a partial lump sum in lieu of monthly payments.

I have not yet contacted the company to look into the lump sum option.

What are the calculations and considerations given to taking a lump sum vs. monthly benefit?

Thank you in advance, RS
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us